Patel asks PSUs to take up community development projects

Patel recently reviewed corporate social responsibility (CSR) initiatives of the public sector units (PSUs) with senior management of 11 state-owned companies. They also included Nalco, NMDC, NTPC and GAIL.

In the meeting, a pilot study conducted by the Tata Institute of Social Sciences (TISS) on CSR in Bhandara and Gondiya was discussed. TISS has been designated as the national CSR hub.

"The minister urged the PSUs to come up with sustainable models of inclusive and participatory growth through their joint and collaborative endeavours," an official said. Patel also wanted the PSUs to involve village panchayats in identification of the development projects.

Under the present CSR guidelines, a PSU with a net profit of less than Rs 100 crore will have to spend 3-5% of it on the CSR.

Those earning Rs 100-500 crore a year will have to earmark 2-3% of it on such activities. A company with a bottomline of Rs 500 crore and above will have to set aside 0.5-2% on the CSR job.

Besides, Patel asked the state-owned units to identify backward districts in other states where they could undertake development activities, based on experience of the pilot work in the two Maharashtra districts.

As on March 31, 2011, there were 248 CPSEs.